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tv   Studio B With Shepard Smith  FOX News  July 12, 2012 12:00pm-1:00pm PDT

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thanks for watching, everyone, here is "studio b" with shephard smith. >>shepard: the news begins anew, on "studio b," officials at penn state university stayed silent of child sex abuse accusations for more than a decade allowing the former assistant football kept sandusky to prey on young boys. those are some of the new findings from a brand new independent report. we the details. first-time unemployment claims fell to the lowest level in four years. but strikely it is not all good news when you hear why. >> plus, aid to the illinois democratic congressman jesse jackson jr. say he took a leave of absence treated for a "mood" disorder. what does that mean? all coming up unless breaking news changes everything. this is "studio b." >> first from fox at 3:00 in new york city absolutely devastating report now concludes that
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members of penn state university's top brass including the late football coach joe paterno knew and did nothing. deliberately concealed accusations of child sex abuse surrounding the former penn state assistant football coach. primarily to avoid the consequences of bad publicity. independent investigators led by a former f.b.i. director say they found a striking lack of empathy, a president who discouraged discussion or dissent. and a culture of reverence for the football program that protect add serial pedophile and allowed him to lure more victims for years. the lead investigator called it "terrible tragedy." >> our most saddening and sobering finding was total disregard not safety and welfare of sandusky child victims by the most senior leaders, including
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paterno and curly never demonstrated reactions or any concern for the safety and well-being of sandusky's victims until after sandusky's arrest. >>shepard: the report finds that coach paterno was aware of a second accusation of child sex abuse back in may of 1998 when a mother said coach sandusky molested her son in the showers at penn state. the coach reportedly learned about the complaint that month but never alerted police and never alerted child welfare ages and in the next year, he suggested that sandusky take on a volunteer role at the university mentoring young people. coach paterno died early this year. >> last month a jury convicted penn state assistant football coach on 40 counts of abusing young boys and he will be sentenced in the next few months and david lee has been follow this and live from new york city. david lee, what do the investigators, independent investigators, offer in the way
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of proof that all of these people knew and did nothing? >>reporter: they examined more than three million documents, among them, identified as exhibit 2h and 2i had written notes by the then senior vice president of business and finance at the school, gary shultz, and they were written in 1998 after sandusky was allegedly involved in an incident of child abuse he wrote "critical issue contact with genitals assuming same experience with the second boy, not criminal." he also without "is this opening a pandora's box, other children." and, again, as you mention paterno knew of this in 1998 and we heard from his family today and they said that sandusky was a great great deceiver. >>reporter: there was an incident in the year 2000, a
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janitor said he witnessed, revealed at trial, an incident with sandusky performing oral sex on a boy in a shower and the january door now has alzheimer's disease but he confined in another janitor what he had seen and investigators, in the report, located the janitor and they asked him why didn't you come forward at the time to say what your colleague said he saw and the janitor said "that would have been like going against the president of the united states in my eyes, i know paterno has so much power if he wanted to get rid of someone i would have been gone." he concluded the remarks to the interviewers by saying "football runs the university." the bottom line, there was a conspiracy of silence. >>shepard: thank you, david lee miller. and now to our legal panel, prosecutor anna signature lazy and randy zelin.
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it costs $500,000 a month to do this and the report concludes all the top administration about who we have all heard, knew, did nothing but cover it up, and their report concludes, they covered it up at the university to keep it from pad publicity and to protect the football program. >> it is sobering to say the least all things we have heard and believed as the child went forward but do see it now in black and white after such an incredible investigation you have to wonder, what does that mean for penn state? what should happen to penn state and their football program when, is it because the men and the people condone this behavior? no one is going to say that. however, why did they do it? in the name of the game so that is where, i think, this is going to go and what it is going to affect. >>randy: prosecute criminally people who break the law. if someone had an obligation to report something they knew,
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prosecute them criminally. if someone lied in the grand jury prosecute them. the person who did the raping has been convicted but the ncaa can step in and say, we are going to think about imposing the death penalty, that is overreaching. it is insane. it is everything and nothing that our system of justice stands for. they have in business in this mess. it has nothing to do with the integrity of the athletic program. as herrible as it is to say that, zero, when it has been imposed, smu being the biggest example, recruiting violations, cash, no players, the integrity of the game. >>shepard: the ruling during the smu investigation more than 25 years ago was, that administrator and coaches knew of payments to players, covered it up, and allowed to happen and they got the death penalty. the accusation is the administration, head coaches, knew of assaults of little boys
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on the penn state campus by a one time high ranking employee and they did nothing. >> this is everything to do with the integrity of the game. everything. they did this in the name of the game to keep their coffers full and make sure they got the top players in there and look at the gravity. this is different great smu because you are talking cash, however, we are talking about the abuse of multiple children in the name of trying to stop pad publicity and making sure they got people there to help them keep winning. it may not be as institutional as far as everyone involved. however, it went to the very top level so i think the effect unfortunately was much more harmful here. >>shepard: the ncaa president sent a letter to the university on november 17 of last year explaining it would wait until the criminal prosecutions are over and then begin a full fledged ncaa investigation and part of what the stuff in this letter the bylaws, 10.1
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identified ten types of unethical conduct making it clear this is not limited to those delineated and talks of moral misrepresentation of young men and women in the apartment and answers questions of penn state and an investigation begins. randy i understand your point this was not about find players but about administration and according to this report at least a culture which not only covered up but allowed more felonous activity to take place. specifically, raping of little boys, at least ten of them, over at least 10 years. if you don't give, the ncaa does not give the university the death penalty what should they do? >>randy: they should do nothing. we talked about the ten different rules that fall under the morals of the ethics, nowhere in the ten, is there any mention --. >>shepard: so the ncaa says that in the letter but this is
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bigger than that. institution of higher learning have a higher responsibility to have high moral standards, they pass along to their students, and set a good example. >>randy: let the department of education deal with it not the committee that oversees integrity in the sport. what happens here has nothing to do with the sport. when you have cancer you do not kill the body. you cut the cancer out and hope the body can function. someone smarter than me said that to me this morning. when you prosecute a murderer the i.r.s. doesn't do that. whether the person pays the taxes. and that came from "sports illustrated," and the person doling out the punishment should have jurisdiction to deal with the punishment, the ncaa has in business being in this and when you get in the catch all, included but not limited to you are headed down a slippery slope. let the criminal prosecution deal with it and the the d
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department of education. >>shepard: there is good points great both side, and from penn state like, an interesting column and from jeff shultz in atlanta journal constitution newspaper i will read a section of it. "the problem is that because sandusky's acts did not lead to competitive advantage the football program should not pay but the coverup changes that, what the powers at penn state it is beyond anything done by athletic program," and he says "to hell with the free camaro we are talking about a child sex offender sweeping it under the rug to protect the image, fund raising and recruiting, there is no more extreme example of lack of institutional control and with the ncaa is institutional control and if penn state goes down, it will go down on that
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phrase, ncaa investigation is beginning, we shall see." penn state university. and how do we feel now about joe paterno? how do you feel now? >>randy: you cannot get away from the children. forget paterno. it is the kids. >>shepard: one more thing, penn state is holding a news conference in 20 minutes, first issued a written statement that the paterno family issue add statement saying open comment on this and news conference in 20 minutes. we will have it. >> iranian officials tried to develop long-range domestic missiles and a new report indicates they could be close to success. and a police officer tried to save trayvon martin with a plastic bag one of the new details released from the investigation into the man who killed the 17-year-old unarmed teenager. more from the prosecution and the first pictures of his hoodie.
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>>shepard: there is word now that iran could be about three years fromming have missile capable of hitting the united states. one of the findings in a new pentagon report. congress got the report last month but bloomberg news got a copy of it. and according to those documents iran's military is making progress improving the accuracy and the "killing power," of the missile arsenal. it says that iran "has methodally cultivate add network of sponsored terrorists surrogates capable of targeting u.s. and israeli interests." it says that iran could be capable of testing long-range intercontinental missile by 2015. and jonathan hunt is here following this. a lost worrying claims in this report to hear from those who have been through it. >>jonathan: it says iran is using all the tools in their box to increase their influence and power in the region from the
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most benign diplomatic outreach to other countries in that region to the more worrying concerns of aiding, training, and funding terrorist and terrorist groups, and, perhaps, putting a lot of effort and money into improving their missile systems. in terms of short range missiles the report says "iran has boosted the effectiveness of existing systems with accurately, improvement, and new payloads." and "iran also has developed medium-range ballistic missile to target israel and continued to increase the range and accuracy of these systems." as for the nuclear program the report is more circumexpect saying iran is developing a range of technical abilities that could be applied to the production of nuclear weapons if the decision is made to do so. >>shepard: does this in some way contradict the
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administration and other claims that iran is beginning to comply in some ways. or are the sanctions having a real effect? >>jonathan: the administration has said that the economic punishment it is putting in place and the world is putting in place has a real effect but the people it affects are the normal iranian civilians, the economy is suffering, food prices are going up, but the military is astronaut suffering at -- the military is not suffering. all they have not shown signing of showing military development or slowing the nuclear development. that is the object of the sanctions. of course, maybe the sanctions have gotten the regime's attention and the hope of western policymakers is that, maybe, adding a little bit to the sanctions or letting them sink in will finally cause the regime to crack, but, so far we do not see the signs of that. it is troubling. >>jonathan: and the longer
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iran has to develop their military capability the more dangerous it becomes for us or anyone else to intervene. >>shepard: thank you, jonathan. congressman jesse jackson jr. has not been in congress for a month. his staff has not said much about where he is. or why he is not there. and that meant rumors and speculation are strong and hit fever pitch yesterday. now we know and how the congressman can take control of the narrative. the details of what is happening here as we know it just ahead. ps about taking aspirin for pain. but they haven't experienced in fact, in a recent survey, 95% of people who tried it agreed that it relieved their headache fast. visit today for a special trial offer.
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>>shepard: staffers for congressman j jackson jr. deny allegations their boss has a substance abuse problem after he went missing a month ago on
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"medical leave," they revealed he is getting treatment for what they call a "mood disorder," from the doctor we are told. that could mean anything from depression to bipolar disorder and a lot in between. but the office is being vague of the details citing medical privacy laws. his father, the reverend jesse jackson spoke to reporters about it today. >> he is unwell. he is under medical supervision. i or only the of love a parent and we feel good about his regaining strength. >>shepard: the office reported he was suffering from exhaustion but released new details after top democrats said he owed the state wents more of an explanation amid house ethics investigation into whether he had any connection to the political scandal that brought down illinois now imprisoned
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ex-governor, blagojevich. and now like from washington. what do we know about congressman jackson's condition? >>reporter: few details. but one source is discounting speculation of a drinking problem saying he has a beer now and then but that is it. this person also said given the ethics investigation against jackson, and the fact he faced a tough primary challenge, it is plausible the congressman had a breakdown of some sort. civil rights icon jesse jackson dealt with questions of his son's whereabouts and the name of his doctor. >> his privacy and the doctor-patient privacy and where he is keeping his restoring is a distance that should be respected. >>reporter: he testified for the defense not trial of former illinois governor rod blagojevich and the justice department has indicted jackson family friend for allegedly offering to raise millions of dollars for blagojevich in
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exchange for the senate seat being vacated by president obama. >>shepard: how are other lawmakers responding today? >>guest: some democrats are critical of jackson for not sharing more information with the constituents but, at the same time, house leaders are wishing him well. >> our prayers and thoughts are with him and his family and we wish him the comfort he needs to get well. i said at the time when when he knew when necessity had a handle on what the evaluation was they would make it known and they have. >> we hope that he gets wealth soon and frankly we hope he gets back soon. i think this is an issue between he and his constituents. i wish him well and hope to see him back soon. >> he has been out of his office since june 10. >>shepard: thank you, steve, from capitol hill. and putting the medical issue aside, how this issue is being handled by the congressman and colleagues and others, we have
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frazier, co-author "rethinking education," so, for a while he was kind gone. and they issued a statement he was suffering from exhaustion and then they had called and they changed it. >>guest: they have handled it miserably. you have to say something. and a public figure cannot remain private in the 21st century. what they ought to look at is their democratic colleagues who similar things have happened. remember anthony weiner he stonewalled his problem for a while and they threw him out. patrick kennedy, remember congressman kennedy? banged into aboutment and announced he had an anxiety disorder and he got treatment, came back and was fine. they have to go public. >>shepard: it depends on how severe whatever you are dealing
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with, is. >>guest: as we have learned, crisis managements 101, nature abhor as vacuum and what fills the vacuum, drugs, alcohol, suicide, women, whatever it is, the vacuum has got to be filled by somebody. it must be filled by the people in charge. this is not going to go away. >>shepard: we got a statement from what we were led to believe was the doctor. so we don't know who the doctor. explaining that he was being treated for a "mood disorder." as i read that i never heard anything described this that way. it can be any number of things but does this require a little more specificity? >>guest: of course. the cardinal rule you have to control the agenda or else it will spiral out-of-control. this will spiral out-of-control unless they get specific. >>shepard: there are websites and bloggers and all kinds of folks. >>guest: and enemies. >>shepard: who will jump in there and put whatever they
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want. >>guest: he has a responsibility to the constituents to say something. >>shepard: thank you, fraser. we are waiting for a news conference at penn state university following the release of a devastating report about what it calls the "coverup across many levels," of penn state the child sex abuse that was going on in some of the facilities with the foam football coach. we will have that coverage coming up and investigators interviewed dozens would knew the neighborhood watch captain or watch man accuses of killing an unarmed teen in central florida and what they said about whether he is racist. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.
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of your retirement today. ♪ ♪ >>shepard: the penn state university news conference is just going in response to the allegations of the report released today. speaking now is the chairman of merck, also, the chair of the special investigation task force and member of the board at penn state. >> he made three clear points. first and foremost, we, the penn state board of trustees, failed in our obligation to provide proper oversight of the university operation. to be clear again, we are accountable for what has happen
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ed here. our administration also failed. the report concludes that at the moment of truth people who are in a position to protect children and to confront a period tore including at highest levels of responsibility in the university, specifically, joe paterno and curly and gary shultz, did not put the welfare children first. also, and importantly, we should know that our hearts remain heavy and we are deeply ashameed over the last 14 years, it appears from the report that there have been three didn't phases of the board's involvement: the board was
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unaware of what was happening during the first phrase from 1998 to march of 2011. we now know that there was inadequate reporting in fact but there were also inadequate reporting lines and inadequate oversight bit board. we were put on notice of the attorney general sandusky investigation in march of 2011 hour we now have asked the foam administration to characterize the issues to us and we failed to ask the right questions, the tough questions. or to take definitive action. we did not force the action. however, when the information about sandusky became more widely public in november of 2011 we did take decisive action involving the judge and his
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group as an independent third- party launching of a full scale investigation into the university and individuals who may have been involved at every level from the top to the bottom. we also took action with respect to the individuals who were most centrally involved and identifying gaps in governance and implementing changes for our policies and procedures for the safety of children and our entire university community. this marks a new era for penn state, for our board trustees with a mixture of humility and steadfastness, we pledge to work closely and cooperatively with the administration and diligently facilitating open communication across all departments and levels of the
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university. that will be for the benefit of the children that are on our campus and for the benefit of every part of university. with that, i will turn the microphone over to our chairman of the board. the board has paramount of accountability for overseeing the proper functioning and governance of the university accept full responsibility not failures that occurred. the board in cooperation with the administration will take every action to ensure an event like this never happens again in our christ community. i would like to reiterate we are grateful to the judge if his report and 119 recommendations. and we will be chosely studying the document as we continue to
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push forward in identifying and implementing necessary changes across the entire university. ins i stepped into the role of the chairman in january of 2012 with the help of my colleagues we have made significant improvements in our structure and university oversight. however, we are just going. recently we have already started taking a more active oversite role by implementing specific oversight committees such as risk, audit, legal, compliance, governance, academic excellence, and human resources. tomorrow, we will be voting on several new governance initiatives. for the sake of our students' aware of and closely remain engaged with the university's administration. to this end, we have already
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begun interacting more closely with members of the president's counsel, faculty, staff, students, alumni, and in our committee meetings. we will continue to see future opportunities to facility the relationships. in addition, we are going to set up some very high goals for ourselves: we must become a best in class standard in board governance and we will keep the judge's recommendations as our north star throughout this process. and above all, we must restore trust in our community. we don't expect it to happen overnight. we will earn it back. as we move forward and develop a culture of transparency and accountability. now i would like to turn the podium over to our president.
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>> i, too, was horrified when i learned of the sandusky allegations last year and as i have watched the process unfold, it has been clear to me i need to reconsider our community's leadership culture. since i assumed the office of president last november, i have committed myself and my administration to addressing this important issue. as karen noted my administration has begun to work with the board of trustees more productively than any administration in our recent history. we are looking forward to continuing to develop the relationships, to facilitate healthy and productive communications and shared accountability between the two. in addition, i have assembleed administration leadership team charged with developing and implementing an action plan that translates the judge's recommendations into a
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comprehensive program for the university. the team is comprised of vice president for administration, david gray, senior vice president for finance and business, and steven dunham as our not vice president and general counsel. the plan will take a few weeks to appropriately research, develop, and approve but we will provide details as they become available. while in no way lessening our focus on our own failings we also are committed to helping to build greater awareness of the societal issue of child abuse. we are partnering with the pennsylvania coalition against rape and have created the center for the protection of children at the hershey medical center. penn state university intends to be a constructive leader preventing, reporting, and spending to such abuse. this is a problem that plagues
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our nation. we have a special duty to officer awareness, prevention, and treatment of child sexual abuse. with today's report, we can continue the process of addressing the most painful chapter in the university's history. my door is open and i am going to be very visible in our community in the coming months. we must work together as we begin picking up the pieces and rebuilding our community to ensure the safer, stronger, and more student-focused university than ever. as the report notes penn state "is an outstanding institution, nationally renowned for ex-nancy -- academics in research," and we are proud if the significant accomplishments of our faculty, staff, and students. we also remain proud of the
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accomplishments of penn state student athletes over many years. and we reaffirm the fundamental premise that academic excellence and athletic achievement are consistent and complementary goals. penn state is a leading institution of public higher education in the world. that will remain unchanged. with the help of our students, our faculty and staff and our alumni the best days are in front of us. penn state will emerge from this as an even stronger and better institution. now i turn the podium for questions. all thank you, rod. >> we do not intend to resign. we believe we have natural evolution of the board by the fact that many new members join
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each year. the consistency is important and we think many of the things we just talked about that are needed to strengthen the university and strengthen the future of the board are already in process. (inaudible). >> we believe that the civility of the university and what is important is that we now really get going on what needs to be done. we think by taking the accountability we just said we own, that is the first step and we have to follow it through and implement it effectively and quickly as we can. >> the president said he was horrified by the allegations when they came, when it first broke. are you not horrified today by what the judge has said about what happened and the inability to protect children? >>guest: absolutely. absolutely. we are horrified.
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we are saddened. we are ... there are not enough words to use. (inaudible). >> they said they had no idea of a grand jury investigation but a letter was revealed by the judge said that steve garvey questioning your leadership about what was going on, on campus, and it clearly showed that he knew of something. >>guest: i think as he tried to go through the timeline of what we knew, when the first mistake was not paying enough attention to the articles that came out back in march of 2011 so it started from there. the report is new. we are just seeing it as we saw it for the first time. >>shepard: "did not pay enough attention to the articles which came out in 2011." for penn state this is just
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going. for the penn state university family, it may never send. analysis right after this. streaming coverage continues at without commercial interruption. the medicare debate continues in washington... ...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ what does it mean for you and your family? [ female announcer ] you've earned the facts.
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call us at... or visit your local liberty mutual office, where an agent can help you find the policy that's right for you. liberty mutual insurance, responsibility -- what's your policy? >>shepard: continuing coverage of the scandal at penn state and the news conference ongoing at moment. anna-sigga nicolazzi is with us and randy zelin and we will get to fraser seitel from the p.r. side of this. a lost stuff penn state will have to deal with for a long time unless they pay off the world. legally speaking, what is being done today? >> getting a little scary. one thing to make statements that are carefully taylored, and well-thought-out for the most part and they did a tremendous job accepting responsibility, owning what happened, and say, by the way i wasn't on the board
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yet, but they owned it but you open up to questions now, now you start running real close to what we call conscious avoidance, that something bad is going on and you say you did not know they may have said "no questions," either tell the questions and suppose yourself or sound like an idiot. >>guest: what they need to do is be accountable the way they were and ken said it best, if this is something out there that someone has not picked up we will give it. they may not want to but you talk about the public relations question which is what this conference was for i don't think it changes the game for them. this report is going to, really, hurt them went lawyers go to the courtroom. >>shepard: when are you going to resign, not, are you? the big picture is, a larger scale accusation that power corrupts and absolute power
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corrupts absolutely. the big picture allegation is, everyone knew this was happening. everyone at the top of the list according to the report knew this was happening, new boys were being victimized and did absolutely nothing to stop it. because the people state university football teach was so powerful and joe paterno was so power will, the power had corrupted and it corrupted absolutely. that is the big question. why you wonder if the ncaa will be here and whether penn state as it is now structured can stay. we will see how it will weather it and it will be p.r. >> what they did today, they had to protect the institution and if that means throwing the president and the football coach under the bus, that is what you do and that is what they did if it tries to get it behind them. >>shepard: you throw them under the bus? >> the institution is more important than the individual. and to get out of this thing, to
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get it off the front page and deal with it in court and get people to forget the publicity or start to forget you have to push under the bush the president, and the football coach, to do it. they did it. >> but there more people available for pushing and you heard the rotters -- reporters saying when are you going to resign. >> you start with the most visible individuals, the president, and most particularly, the football coach. >>shepard: it is like cancer surgery: you cut it out and if it appears there is more cancer you go back and keep cutting. >> the institution must exist forever, and that means the institution itself is more important than any individual and if to get out of this horrible, horrible dilemma we have to push these two individuals under the bus, including this revered football coach, that is what you do. >>shepard: part of the
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accusation is the university's power was usurped by power which was put on this football team and this football coach and this program that is the penn state university. what is "we are penn state," now and what happens next?
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>>shepard: continuing coverage of the report which came out today on penn state university and the ongoing news conference at penn state as the highest ups at penn state discuss what happens now and going forward. the prosecutor anna-sigga nicolazzi is still with us and randy zelin and p.r. consultant, fraser seitel. if i'm at penn state, i love penn state as much as i love ole miss and this happened it my penn state i could make an argument for as long use want to talk, this is not about
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football. this wasn't about football and football power this was about a man who did bad things and never involved any football players, no allegation of anything involving football players and then i would return to, again, an article or a column from jeff shultz in the atlantic journal constitution and the very end of it, "the tone at top of the school said that the investigator was dissuaded the school janitors from coming forward after witnessing incidents and they were afraid of being fired for reporting a mowerful football coach." don't forget, coach sandusky's office was next to joe paterno, the offices closest to the man in charge are the offices of the greatest power. ask anyone in any corporation anywhere. the last line of this column "sandusky will spend the rest his life in prison, he could have been stopped sooner, but paterno and the powers at penn
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state were too concerned about the ramifications off-and-on the football field and that, concludes jeff shultz, makes it a football scandal, as well, and if the ncaa agrees, it is a football scandal as well, with overwhelming evidence there was a "lack of institutional control," with that being the operative phrase, if they grow this is a football issue, penn state football is dead. >> what penn state has to do is take the initiative, now, and the judge has 128 recommendations and penn state has to be public about how they are changing the process, how they change disclosure, how they modify willing the program and be public about it when they do so. >>shepard: what has crossed the wires while you were in commercial break, penn state trustee on coach joe paterno "61 years of excellent service to
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the university now marred." this report throws joe paterno under the bus. all the legend of joe paterno has taken a mortal hit from this, very sad on a lot of levels. take tylenol or take aleve, the #1 recommended pain reliever by orthopedic doctors. just two aleve can keep pain away all day. back to the news.
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delivering mail, medicine and packages. yet the house is considering a bill to close thousands of offices, slash service and layoff over 100,000 workers. the postal service is recording financial losses but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains $5 billion a year from post office revenue while the postal service is forced to overpay billions more into federal accounts. house bill 2309 is not the answer.
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another cup of coffee? how long is this one going to last? forty-five minutes? an hour? well... listen. 5-hour energy lasts a whole lot of hours. take one in the afternoon, and you'll feel alert and energized 'til the cows come home. it's packed with b-vitamins and nutrients to make it last. so what's it going to be, partner? 5-hour energy. wise choice. 5-hour energy. hours and hours of energy.


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